Waymo inflates their prices to be above that of Uber/Lyft because they don't have enough vehicles to meet demand. But their operating costs / mile are lower than that of Uber/Lyft. I'd estimate their internal cost per mile is approx. half that of Uber/Lyft. They pocket the rest because they need to recoup decades of expensive R&D.

There is also no reason to compete with Uber/Lyft on price because they are just leaving money on the table. When Waymo first launched, we saw them try to undercut (Waymo was about 20% cheaper than Uber/Lyft) but now it's about 20% more expensive. People are willing to pay extra for Waymo, so why would they charge less?

The margin on each Waymo ride is currently very, very high. I don't expect Waymo to cut prices until real competition arrives.

IIRC, in SF they're slightly more expensive before tip, but having ridden in them in SF, LA, and AZ I've always felt they were cheaper. Over the long run, they will probably end up being cheaper from the wholesale perspective since eventually the parts and technology cost will come down with time and scale while human wages will continue to rise.

That said, it doesn't really matter if they're cheaper as long as they're comparable.

The cars are newer and nicer (for now), they're almost always cleaner since they can rotating one car out for cleaning doesn't mean the driver is losing earnings, they're better drivers than the average ride-share driver, you don't feel the need to tip, and I've multiple of my friends who are women call out that they feel safer in them because there's no risk of the driver being creepy (or worse).

I don't think Waymo is trying to win on price right now. I think as long as they just stay somewhat competitive on that front the other benefits will continue to draw in customers.

If a waymo costs $200k (car+sensors+install labor) and drives 200k miles, then amortizing up-front costs alone are about $1/mile. We don't really know what the TCO of a waymo is, and it's possible it could go down with economies of scale. Rideshare drivers can get paid $1-2/mile although it varies a lot.

During peak hours Waymo is more expensive than standard uber/lyft - I don't pay attention to black/premium pricing. Off-peak the price can be comparable. I mainly check because my wife prefers it.

Depends on the region, I think. Lyft and Uber partner with them in certain cities, so you transparently are charged the same as a similar ride with a human driver. It's only a better experience than a human driver, though, in my view. No chance of yapping, more privacy, no chance of your driver being a psycho, cars are better maintained.

Sometimes cheaper, [nearly] always better.

It's hard to measure "cheaper" as an end user consumer, the price you pay for the service, because it's very likely they're operating at a loss to gain market share and growth.

Exact same reason why Uber and Lyft were considerably cheaper than taxis in many big cities when they first launched (eg: Lyft in Seattle in 2013/2014), running at a loss, and the pricing has now incrementally grown to become the same as, or even more expensive than traditional meter taxis in some places.